Stock of the Day

November 7, 2019

United Rentals (URI)

$656.42
-$38.35 (-5.5%)
Market Cap: $45.37B

About United Rentals

United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment includes backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. The specialty segment rents specialty construction products, including trench safety equipment consists of trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; power and heating, ventilating, and air conditioning equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment; fluid solutions equipment for fluid containment, transfer, and treatment; and mobile storage equipment and modular office space. This segment serves construction companies involved in infrastructure projects, and municipalities and industrial companies. It also sells aerial lifts, reach forklifts, telehandlers, compressors, and generators; construction consumables, tools, small equipment, and safety supplies; and parts for equipment that is owned by its customers, as well as provides repair and maintenance services. The company sells used equipment through its sales force, brokers, website, at auctions, and directly to manufacturers. The company operates in the United States, Canada, Europe, Australia, and New Zealand. United Rentals, Inc. was incorporated in 1997 and is headquartered in Stamford, Connecticut.

United Rentals Bull Case

Here are some ways that investors could benefit from investing in United Rentals, Inc.:

  • United Rentals, Inc. has a strong consensus rating of "Moderate Buy" from analysts, indicating positive sentiment towards the stock's future performance.
  • The company recently increased its quarterly dividend from $1.63 to $1.79, reflecting a commitment to returning value to shareholders. This increase represents an annualized dividend yield of 1.01%.
  • As of the latest trading session, the stock price is $708.42, which is significantly below its 52-week high of $896.98, suggesting potential for price appreciation.
  • United Rentals, Inc. has a robust market capitalization of approximately $46.27 billion, indicating a strong position in the equipment rental industry.
  • The company reported a net margin of 16.78% and a return on equity of 34.21%, showcasing efficient management and profitability, which are attractive traits for investors.

United Rentals Bear Case

Investors should be bearish about investing in United Rentals, Inc. for these reasons:

  • The stock has recently experienced a decline, trading down 1.7% in a single day, which may indicate volatility and potential risks in the short term.
  • Analysts have varied opinions on the stock, with one rating it as a sell, which could signal caution for potential investors.
  • The company's current ratio is 0.98, which is below 1, suggesting that it may have difficulty meeting short-term liabilities, a concern for liquidity.
  • United Rentals has a debt-to-equity ratio of 1.42, indicating a higher level of debt compared to equity, which could pose risks if market conditions change.
  • Recent earnings reports showed that the company missed analysts' consensus estimates by $0.06, which may raise concerns about its growth trajectory.

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